When is the initial franchise fee due for a Better Blend franchise?
Better_Blend Franchise · 2024 FDDAnswer from 2024 FDD Document
FRANCHISE AGREEMENT
| Type of expenditure | Amour | nt | Method of payment | When due | To whom payment is to be made |
|---|---|---|---|---|---|
| Initial franchise fee (see Note 1) | $35,000 - | $35,000 | Check or wire transfer | Upon signing the franchise agreement | Us |
| Rent (one month) (see | $2,000 - | $6,000 | Check | Upon signing lease | Landlord |
| Note 2) | |||||
| Lease Security Deposit (see Note 2) | $2,000 - | $6,000 | Check | Upon signing lease | Landlord |
| Utilities | $500 - | $1,500 | Check, debit, and/or credit | Upon ordering service | Utility providers |
| Architectural / Engineering | $10,000 - | $15,000 | Check, debit, and/or credit | As incurred | Architect; engineering company |
| Leasehold | $105,000 - | $330,000 | Check | As incurred or when billed | Contractors |
| Improvements | |||||
| Market Introduction | $5,000 - | $7,500 | Check, debit, and/or credit | As incurred or when billed | Vendors and suppliers |
| Program and Grand | |||||
| Opening | |||||
| Furniture, Fixtures, and Equipment | $50,000 - | $80,000 | Check, debit, and/or credit | As incurred | Vendors and suppliers |
| Computer Systems | $2,000 - | $4,000 | Check, debit, and/or credit | As incurred | Vendors and suppliers |
| Insurance (12 months) | $1,000 - | $3,000 | Check | Upon ordering | Insurance company |
| Signage | $3,000 - | $15,000 | Check, debit, and/or credit | Upon |
Source: Item 7 — ESTIMATED INITIAL INVESTMENT (FDD pages 15–17)
What This Means (2024 FDD)
According to Better Blend's 2024 Franchise Disclosure Document, the initial franchise fee, ranging from $35,000 to $35,000, is due upon signing the franchise agreement. Payment can be made via check or wire transfer directly to Better Blend. This fee grants the franchisee the right to operate a Better Blend franchise.
It's important to note that this initial franchise fee is just one component of the total estimated initial investment, which ranges from $251,700 to $570,500 for the first franchise. Other expenses include rent, lease security deposit, leasehold improvements, furniture, fixtures, equipment, and initial marketing expenses. These additional costs are paid to various entities like landlords, contractors, vendors, and suppliers at different times, such as upon signing the lease or as incurred.
For franchisees considering a Multi-Unit Development Agreement (MUDA), Better Blend also charges additional initial franchise fees. These fees are $30,000 for the second franchise, $25,000 for the third, and $20,000 for the fourth and each additional franchise. According to the FDD, 50% of these additional franchise fees are due upon signing the MUDA. This structure incentivizes multi-unit development by reducing the initial investment for each subsequent location.